Revenue of $499 million vs. $434 million in prior year
BOZEMAN, Mont., April 29, 2025--(BUSINESS WIRE)--FICO (NYSE:FICO), a global analytics software leader, today announced results for its second fiscal quarter ended March 31, 2025.
Second Quarter Fiscal 2025 GAAP Results
Net income for the quarter totaled $162.6 million, or $6.59 per share, versus $129.8 million, or $5.16 per share, in the prior year period.
Net cash provided by operating activities for the quarter was $74.9 million versus $71.0 million in the prior year period.
Second Quarter Fiscal 2025 Non-GAAP Results
Non-GAAP Net Income for the quarter was $192.7 million versus $154.5 million in the prior year period. Non-GAAP EPS for the quarter was $7.81 versus $6.14 in the prior year period. Free cash flow was $65.5 million for the current quarter versus $61.6 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned "Non-GAAP Results" and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.
Second Quarter Fiscal 2025 GAAP Revenue
The company reported revenues of $498.7 million for the quarter as compared to $433.8 million reported in the prior year period, an increase of 15%.
"In our second fiscal quarter, we again delivered strong results with revenue growth of 15%, and even stronger earnings growth," said Will Lansing, chief executive officer. "We reiterate our fiscal year 2025 guidance, which includes double-digit percentage growth for both revenue and earnings."
Revenues for the second quarter of fiscal 2025 for the company’s two operating segments were as follows:
Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $297.0 million in the second quarter, compared to $236.9 million in the prior year period, an increase of 25%. B2B revenue increased 31%, driven largely by higher unit prices. B2C revenue increased 6% from the prior year period due to increased revenue from our indirect channel partners.
Software revenues, which include the company’s analytics and digital decisioning technology, were $201.7 million in the second quarter, compared to $196.9 million in the prior year period, an increase of 2%, mainly due to increased license revenue recognized at a point in time. Software Annual Recurring Revenue at March 31, 2025 was up 3% year-over-year, consisting of 17% in platform ARR growth and a 3% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 102% on March 31, 2025, with platform software at 110% and non-platform software at 96%.
Outlook
We reiterate the following guidance for fiscal 2025:
Fiscal 2025 Guidance
Revenues
$1.98 billion
GAAP Net Income
$624 million
GAAP EPS
$25.05
Non-GAAP Net Income
$712 million
Non-GAAP EPS
$28.58
The Non-GAAP financial measures are described in the financial table captioned "Reconciliation of Non-GAAP Guidance."
Company to Host Conference Call
The company will host a webcast on April 29, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its second quarter fiscal 2025 results and provide various strategic and operational updates. The call can be accessed at FICO's web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through April 29, 2026.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the Company’s Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, or divestitures, and material adverse developments in global economic conditions or in the markets we serve. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2024 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2025
September 30, 2024
(In thousands)
Assets
Current assets:
Cash and cash equivalents
$
146,641
$
150,667
Accounts receivable, net
492,542
426,642
Prepaid expenses and other current assets
85,727
40,104
Total current assets
724,910
617,413
Marketable securities
45,400
45,289
Property and equipment, net
50,552
38,465
Operating lease right-of-use assets
27,572
29,580
Goodwill
779,279
782,752
Other assets
208,040
204,385
Total assets
$
1,835,753
$
1,717,884
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and other accrued liabilities
$
79,951
$
102,285
Accrued compensation and employee benefits
76,511
106,103
Deferred revenue
171,780
156,897
Current maturities on debt
15,000
15,000
Total current liabilities
343,242
380,285
Long-term debt
2,513,179
2,194,021
Operating lease liabilities
20,816
21,963
Other liabilities
82,568
84,294
Total liabilities
2,959,805
2,680,563
Stockholders’ deficit
(1,124,052
)
(962,679
)
Total liabilities and stockholders’ deficit
$
1,835,753
$
1,717,884
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended March 31,
Six Months Ended March 31,
2025
2024
2025
2024
(In thousands, except per share data)
Revenues:
On-premises and SaaS software
$
183,826
$
177,180
$
369,837
$
345,848
Professional services
17,870
19,744
36,152
41,023
Scores
297,039
236,885
532,714
428,997
Total revenues
498,735
433,809
938,703
815,868
Operating expenses:
Cost of revenues
87,630
86,946
174,975
170,407
Research and development
45,037
40,880
90,182
83,515
Selling, general and administrative
120,420
110,867
248,370
215,196
Amortization of intangible assets
—
275
—
550
Total operating expenses
253,087
238,968
513,527
469,668
Operating income
245,648
194,841
425,176
346,200
Other expense, net
(32,632
)
(22,107
)
(62,031
)
(42,876
)
Income before income taxes
213,016
172,734
363,145
303,324
Provision for income taxes
50,401
42,935
48,002
52,460
Net income
$
162,615
$
129,799
$
315,143
$
250,864
Earnings per share:
Basic
$
6.67
$
5.23
$
12.92
$
10.12
Diluted
$
6.59
$
5.16
$
12.73
$
9.96
Shares used in computing earnings per share:
Basic
24,389
24,819
24,383
24,791
Diluted
24,685
25,154
24,756
25,186
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended March 31,
2025
2024
(In thousands)
Cash flows from operating activities:
Net income
$
315,143
$
250,864
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
6,950
6,178
Share-based compensation
82,358
67,022
Changes in operating assets and liabilities
(132,202
)
(119,159
)
Other, net
(3,334
)
(11,750
)
Net cash provided by operating activities
268,915
193,155
Cash flows from investing activities:
Purchases of property and equipment
(2,960
)
(5,403
)
Capitalized internal-use software costs
(13,638
)
(5,380
)
Net activity from marketable securities
(3,285
)
(1,257
)
Net cash used in investing activities
(19,883
)
(12,040
)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans
450,000
255,000
Payments on revolving line of credit and term loans
(132,500
)
(74,500
)
Proceeds from issuance of treasury stock under employee stock plans
16,062
14,937
Taxes paid related to net share settlement of equity awards
(198,531
)
(133,786
)
Repurchases of common stock
(379,738
)
(243,473
)
Other, net
(3,016
)
(1,400
)
Net cash used in financing activities
(247,723
)
(183,222
)
Effect of exchange rate changes on cash
(5,335
)
996
Decrease in cash and cash equivalents
(4,026
)
(1,111
)
Cash and cash equivalents, beginning of period
150,667
136,778
Cash and cash equivalents, end of period
$
146,641
$
135,667
FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(Unaudited)
Quarter Ended March 31,
Six Months Ended March 31,
2025
2024
2025
2024
(In thousands, except per share data)
GAAP net income
$
162,615
$
129,799
$
315,143
$
250,864
Amortization of intangible assets
—
275
—
550
Share-based compensation expense
41,704
35,448
82,358
67,022
Income tax adjustments
(10,366
)
(9,096
)
(20,229
)
(17,011
)
Excess tax benefit
(1,264
)
(1,934
)
(40,794
)
(25,709
)
Non-GAAP net income
$
192,689
$
154,492
$
336,478
$
275,716
GAAP diluted earnings per share
$
6.59
$
5.16
$
12.73
$
9.96
Amortization of intangible assets
—
0.01
—
0.02
Share-based compensation expense
1.69
1.41
3.33
2.66
Income tax adjustments
(0.42
)
(0.36
)
(0.82
)
(0.68
)
Excess tax benefit
(0.05
)
(0.08
)
(1.65
)
(1.02
)
Non-GAAP diluted earnings per share
$
7.81
$
6.14
$
13.59
$
10.95
Free cash flow
Net cash provided by operating activities
$
74,918
$
71,035
$
268,915
$
193,155
Capital expenditures
(9,427
)
(9,422
)
(16,598
)
(10,783
)
Free cash flow
$
65,491
$
61,613
$
252,317
$
182,372
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.
FAIR ISAAC CORPORATION
RECONCILIATION OF NON-GAAP GUIDANCE
(Unaudited)
Fiscal 2025 Guidance
(In millions, except per share data)
GAAP net income
$
624
Share-based compensation expense
157
Income tax adjustments
(39
)
Excess tax benefit
(30
)
Non-GAAP net income
$
712
GAAP diluted earnings per share
$
25.05
Share-based compensation expense
6.31
Income tax adjustments
(1.58
)
Excess tax benefit
(1.20
)
Non-GAAP diluted earnings per share
$
28.58
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.
